Income & Economics (IE)
What federal form is used to file annual income taxes?
1040
What does a budget help you do?
Track income and expenses to manage money effectively.
What is compound interest?
Interest earned on both the principal and previously earned interest.
What does “comparison shopping” mean?
Comparing products and prices before making a purchase.
What are the four basic types of economic systems?
Traditional, Market, Command, Mixed.
What is the difference between gross and net income?
Gross income is total earnings before deductions; net income is earnings after deductions.
Name one advantage of renting and one of owning a home.
Renting: flexibility and low maintenance; Owning: builds equity and stability.
Why is it important to start saving for retirement early?
To maximize compound interest and long-term growth.
What is one red flag of an online scam?
Poor grammar, urgent messages, or suspicious links.
What determines prices in a market economy?
Supply and demand.
What is FAFSA used for?
Applying for college financial aid.
What is a secured loan?
A loan backed by collateral (e.g., a car or house).
What does “diversification” mean in investing?
Spreading investments across different assets to reduce risk.
What law protects you from false advertising?
The Federal Trade Commission (FTC) enforces truth-in-advertising laws.
What is scarcity?
Limited resources for unlimited wants.
How does a college degree affect lifetime income potential?
It typically increases lifetime income.
What factors most affect your credit score?
Payment history, credit utilization, length of credit history, new credit, and credit mix.
Name two types of retirement accounts.
401(k), IRA.
What is impulse buying?
Making an unplanned purchase based on emotion or sudden desire.
How does fiscal policy affect the economy?
By using government spending and taxation to influence the economy.
Name three common payroll deductions.
Federal income tax, Social Security, Medicare.
What’s the difference between a credit card and a debit card?
Credit cards borrow money from a lender; debit cards pull money directly from a bank account.
What is the purpose of an emergency fund?
To cover unexpected expenses like medical bills or car repairs.
How can you protect your identity when shopping online?
Use secure websites (https), avoid public Wi-Fi, and use strong passwords.
How does North Carolina contribute to the U.S. economy?
Through industries like agriculture, technology, manufacturing, and banking. Also Tobacco, Wheat, Corn, etc.